Features Of Theory Z Essay

2.0 Contribution of William G. Ouchi

2.1 Features of Theory Z

In 1981, William G. Ouchi has proposed Theory Z as a management approach that can improve the performance of organization. According to Ouchi, Theory Z is a combination of an American management style (Theory A) and Japanese management style (Theory J) which offers the concept of a hybrid management style. There are seven dimensions that differentiate Theory A and Theory Z.

Theory A Theory J

Short term employment Lifetime employment

Individual decision making Collective decision making

Individual Responsibility Collective Responsibility

Rapid Evaluation and Promotion Slow evaluation and Promotion

Explicit control mechanism Implicit control mechanism

Specialized career paths Non

In the organization that utilise Theory J are emphasis on teamwork rather than individually because the successful of organization are team efforts. A collective responsibility means that all the awards, praise and accomplishment are shared among each other. Whereas, according to Tackach(1984), there is no single employee will be blamed by other employees for a bad judgement. However, Theory Z had practice individual responsibilities in the

Leaders in the Japanese organizations underline shared power among the workers and collective work groups (Lambert, 1987). Conversely, traditional hierarchical organizations in American focus on power which gives trust to individual achievement and direction of subordinates to accomplish goals and objectives. The leaders can influenced their power in the workplace revealed by those in leadership positions. Etzioni (1961) states there have three kinds of power such as coercive, remunerative and